U.S. Dairy Processing Invests $15 Billion In Manufacturing Across 23 States

More than 85 projects underscore dairy’s position as a bright spot in American manufacturing.

America’s dairy processors are investing more than $15 billion in new and expanded manufacturing capacity across 23 states, with more than 85 projects planned or underway through 2030, according to a new analysis from the International Dairy Foods Association (IDFA).

The investments span nearly every major dairy category and include new plants, facility expansions, additional processing lines and modernization projects. They reflect strong confidence in the future of U.S. dairy as companies add capacity to produce more high-protein, nutrient-dense dairy foods to meet growing domestic demand and expand export opportunities.

“America’s dairy industry is investing for growth,” said Michael Dykes, D.V.M., IDFA President and CEO. “More than $15 billion in new capacity and modernized facilities and economic opportunity for communities across 23 states. Dairy companies are putting capital to work because they see growing demand for dairy foods in the U.S. and around the world.”

The investment comes as dairy manufacturing is projected to outpace the broader manufacturing sector in both employment and output growth over the next decade.

The U.S. Bureau of Labor Statistics projects dairy product manufacturing employment will increase 5.6% from 2025 to 2035, compared with 3.5% growth for total U.S. employment and just 0.6% for manufacturing overall. Inflation-adjusted dairy manufacturing output is projected to rise nearly 30% over the same period, from $138.5 billion to $179 billion over the same period.

Food manufacturing is the nation’s largest manufacturing sector by employment and is projected to add approximately 84,000 jobs between 2025 and 2035—more employment growth than any other major manufacturing sector. Dairy is positioned to contribute to that growth through continued investment in production capacity, technology and innovation.

That makes dairy a particularly strong example of the innovation, investment and economic contribution celebrated during Manufacturing Month each October. The U.S. dairy manufacturing industry includes approximately 1,200 processing plants supplied by nearly 24,000 American dairy farms. Across the broader dairy economy, the industry supports more than 3.05 million jobs, generates $197.6 billion in wages, contributes $779.45 billion in overall economic impact and generates more than $83 billion in state and local taxes.

Top 5 States by Investment Total

1. New York: $2.8 Billion
2. Texas: $1.7 Billion
3. Wisconsin: $1.4 Billion
4. Idaho: $720 Million
5. Iowa: $701 Million

Investments by Product Category

• Milk/Cream: $5.63 Billion
• Cheese: $3.76 Billion
• Yogurt & Cultured Dairy: $3.07 Billion
• Butter & Powders: $1.86 Billion
• Ice Cream: $745 Million

Map of Investments

 

Ongoing updates are made to this map and investment total and tracked on IDFA’s website at idfa.org/investment. IDFA works in partnership with EA Risk to track investments and maintain this map.

For more information on the U.S. dairy industry’s economic impact at the national, state and Congressional district levels, please visit www.idfa.org/dairydelivers.